Since the beginning of the crisis a lot of russian hypermarkets have chosen to design their activity centered around prices. Some like Ашан chose this strategy from the very beginning with their slogan "удар по ценам" but if you visited russian hypermarkets in September , looked at street advertising, web sites...you should have been lost in the jungle of promotions, actions, opportunities, special offers :Специальное предложение!, цены ниже, ещё ниже, скидки для вас!, акции, шок цена...
What's up in reality? Who is really cheaper?
The best way to know, was to go and check prices directly in stores during the same period of time (2009, week 37 and 38). September was a good time to compare prices on kids products like cookies, milk or chocolate. And we did it in 6 different stores in Moscow: Achan (Altufievo), Karroussel (Otradnoe), 7 continent (Bibirevo), Perekrestok (Bibirevo), Nash (C.c. Rio) and Carrefour (c.c. Fillion) (Ашан, Карусель, Седьмой Континент, Перекресток, Наш, Карфур)
PRICES LIST- Moscow- September 2009
Prices in roubles
* sticked on the product: -10%
The point is not to be cheaper than competitors at all costs. Price and promotion policy should reflect positionning and therefore psychology and motivations of the target customer.
Communication is everywhere and not only in advertising policy. Product, price and place are as many signs to tell customers the story of the brand.
If you are not able to propose nice prices, better to communicate in another direction and opt for differenciation. A big number of criteria determining customers' choice is available: proximity of hypermarket, quality/price, service...Again customer analysis is the key of success.
What's up in reality? Who is really cheaper?
The best way to know, was to go and check prices directly in stores during the same period of time (2009, week 37 and 38). September was a good time to compare prices on kids products like cookies, milk or chocolate. And we did it in 6 different stores in Moscow: Achan (Altufievo), Karroussel (Otradnoe), 7 continent (Bibirevo), Perekrestok (Bibirevo), Nash (C.c. Rio) and Carrefour (c.c. Fillion) (Ашан, Карусель, Седьмой Континент, Перекресток, Наш, Карфур)
PRICES LIST- Moscow- September 2009
Prices in roubles
* sticked on the product: -10%
The point is not to be cheaper than competitors at all costs. Price and promotion policy should reflect positionning and therefore psychology and motivations of the target customer.
Communication is everywhere and not only in advertising policy. Product, price and place are as many signs to tell customers the story of the brand.
If you are not able to propose nice prices, better to communicate in another direction and opt for differenciation. A big number of criteria determining customers' choice is available: proximity of hypermarket, quality/price, service...Again customer analysis is the key of success.
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